US dollar
The dollar slipped in early European trade Thursday, with the euro gaining against the greenback ahead of a policy meeting of the European Central Bank later in the session. The ECB is set to leave rates unchanged but comments on the exchange rate could move the euro.
The European Union is now studying the possibility of legal action against the U.K. over Prime Minister Boris Johnson’s plans to breach the ‘Withdrawal Agreement’ that is the baseline for talks on the future trading relation between the two sides.
The euro has pushed higher, helped by reports that ECB officials are growing more confident in the bloc’s economic outlook. However, EUR/USD remains at 1.1826, some way below the 1.20 level it briefly touched last week before.
Elsewhere, GBP/USD rose 0.1% to 1.3002 recovering from a dip to a six-week low of $1.2839 on Wednesday, helped by the more risk-on tone seen in the equity markets.
The USD/JPY pair inched down 0.06% to 106.08.
Oil prices slid on Thursday after data showed U.S. crude stockpiles unexpectedly rose last week, stoking concern about a sluggish recovery in fuel demand as coronavirus cases continue to surge in many countries.
Gold was steady on Thursday morning after a rapid rise overnight. A fall in the dollar and a volatile stock market situation set the stage for the initial rise.
Now all eyes turn to the latest meeting of the European Central Bank, with its policy decision due at 11:45 GMT, followed 45 minutes later by a news conference from President Christine Lagarde.
Later during the early North American session, the initial weekly jobless claims will be the only relevant release from the US at 12:30 GMT.